Thursday, March 17, 2016

Foreigners dump dollars in January at the highest rate on record

From August of last year through December, foreigners dumped more than $550 billion in dollar based assets as the demise of the petrodollar in global trade continues to expand.  And as we begin 2016, a new report out for January shows that more treasuries were dumped in that month alone than in any month on record.
The previous high of $48.1 billion in treasuries sent back to the U.S. was shattered in January as foreigners dumped their dollars at a rate of $57.2 billion.  Much of this was tied to country’s using their dollar reserves to shore up their own currencies, but a large part also included less need for dollars to purchase oil and other commodities as the global economy moved strongly into recession.


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